27 Mar 13. EADS (stock exchange symbol: EAD) received approval from shareholders at its Extraordinary General Meeting (EGM) in Amsterdam for a far-reaching overhaul of the company’s corporate governance structure, including the election of new directors. Shareholders approved all 15 resolutions that are required to authorize the Completion (“Consummation”) of the Multiparty Agreement announced on 5 December 2012 that will normalize and simplify the governance of EADS. The Completion is expected to occur on 2 April 2013. Also, the Board of Directors received authorization from shareholders to plan a repurchase of up to 15% of EADS’ outstanding share capital at a maximum price of €50 per share and to cancel shares purchased through the buyback. Shareholders approved the appointment of the following directors to the future EADS Board of Directors: Manfred Bischoff; Ralph D. Crosby; Tom Enders (Executive Member); Hans-Peter Keitel; Hermann-Josef Lamberti; Anne Lauvergeon; Lakshmi N. Mittal; Sir John Parker; Michel Pébereau; Josep Piqué i Camps; Denis Ranque; and Jean-Claude Trichet. The members of the new Board of Directors will meet informally after the EGM to prepare the election of the Chairman of the Board, the nomination of the Board Committees, and adoption of its new rules. Those matters will be decided at a Board of Directors meeting immediately after the Completion of the agreement when the new Board becomes effective. Upon Completion, it is also expected that the Board will decide whether to undertake a share buyback programme, including determining the size, timing and form of such a programme and the extent to which the Company may participate in possible core Shareholder offerings of EADS shares, based on the prevailing market conditions.
27 Mar 13. German carmaker Daimler AG (DAIGn.DE) expects to book a
non-cash gain in the second quarter after revaluing its 7.5 percent stake in aerospace group EADS (EAD.PA) to account for a loss of influence. Quarterly net profit after minorities will be boosted by 1.34bn euros ($1.7bn), or 1.25 euros per share, it said on Wednesday. The revaluation is necessary after EADS shareholders approved sweeping changes in its ownership structure, which finally allows Daimler to exit EADS, a non-core investment burdened by state influence. Under accounting rules, Daimler’s loss of influence now requires it to reclassify the way it carries EADS in its books, in the process forcing it to revalue the stake on the basis of the Airbus parent’s current, higher, share price. Sources familiar with the matter said the company was aiming to sell the stake in the second half of the year but didn’t want to telegraph its exact plans to the market. Were Daimler to dispose of the stake at exactly the same price as it will soon be valued in its accounts, then Daimler won’t reap any additional book profits. But it will receive the 1.34bn euros in cash, which in turn can be used to help fund next year’s dividend payout, following April’s upcoming 2.3bn euro payout. The German carmaker originally owned 30 percent of EADS, after transferring the assets of its DASA aerospace division into the newly created European group in 2000. (Source: Reuters)
25 Mar 13. Raytheon Company (NYSE: RTN) is consolidating its businesses to streamline operations, increase productivity and achieve stronger alignment with its customers’ priorities. The Raytheon Company structure will consist of four businesses: Intelligence, Information and Services, resulting from the combination of the Intelligence and Information Systems and Raytheon Technical Services businesses; and the Integrated Defense Systems, Missile Systems, and Space and Airborne Systems businesses, each of which will be expanded by the realignment of the former Network Centric Systems business operations. This new structure will be effective April 1, 2013.
Additionally, Raytheon’s Board of Directors has elected Dr. Thomas A. Kennedy to the new position of exec